US Steel and the United Steelworkers have settled a lockout at the Nanticoke steel works that started in April

Workers at U.S. Steel Canada’s Nanticoke plant are starting to head back to work after settling a lockout that started in April.

It was the third lockout by U.S. Steel Canada since the company bought the former Stelco in 2007.

Members of United Steel Workers Local 8782 voted 57 per cent to accept a contract that reduces some wage and benefit provisions, but staves off other cuts sought by the company, said Bill Ferguson, president of the local.

“We have people coming back into the plant, they’re going through all the safety training they require,” said Ferguson, but said he expects the recall to be “quick”.

There were close to 1,000 employees at the plant when the lockout started, Ferguson, but “it remains to be seen” how many will decide to return.

Trevor Harris, spokesman for U.S. Steel, said that between safety training and start-up procedures, the company doesn’t expect production to resume until early in the fourth quarter, which starts Oct. 1.

The company said in a statement that the agreement “will help to make Lake Erie Works sustainable and competitive in both the Canadian and global marketplace for the next five years.”

The contract battle was a bitter one, with the union digging in after the company demanded a government-supervised vote on its final offer in July. The vote was held, but workers rejected the offer.

Ultimately, the terms of the new agreement were hammered out during talks in Pittsburgh between U.S. Steel and the union’s headquarters.

The company relented on proposals to loosen restrictions on contracting out, and on significantly higher co-payments for drug and dental benefits.

But the union accepted a five-year deal that won’t increase the pay scale. Workers will get a $2,500 signing bonus and $500 anniversary bonuses. They’re also eligible for cost of living payments if inflation exceeds 3 per cent, as well as profit sharing.

But Marvin Ryder, a professor at the DeGroote School of Business at McMaster University, noted that inflation isn’t currently at 3 per cent, and the company isn’t currently profitable.

The company also won a cap on vacations at 5 weeks, though workers currently getting six weeks or more won’t lose the extra vacation.

“Generally speaking, U.S. Steel got what it wanted,” Ryder said.

While workers, who earn an average $65,000 a year, lost a third of their annual wages, the company didn’t suffer dramatically because the steel market remains soft, he said. Nanticoke makes flat rolled steel, used in cars and appliances.

Ryder also said that having the settlement hammered out in the U.S. raises questions about the power dynamic in the union between the local and its head office: “I’ve never seen something like this before.”

More on thestar.com

We value respectful and thoughtful discussion. Readers are encouraged to flag comments that fail to meet the standards outlined in our
Community Code of Conduct.
For further information, including our legal guidelines, please see our full website
Terms and Conditions.